NTMA increases valuation on AIB shareholding to €10bn

Monday 28 July 2014 16.34
The NTMA's valuation on its AIB shareholding was 56% higher by the end of 2013 when compared to the previous year
The NTMA's valuation on its AIB shareholding was 56% higher by the end of 2013 when compared to the previous year

The National Treasury Management Agency has significantly increased its valuation on the AIB shares it holds, according to its annual report for 2013.

The State entity, which invested €20.8bn in the bank as part of the State’s bailout of the sector through the National Pension Reserve Fund, valued its shareholding in the company at €10bn by the end of last year.

This compares to a valuation of €6.4bn at the end of 2012.

The NTMA also invested €4.7bn in Bank of Ireland during the bailout but had recouped much of that through a sale of shares by the end of last year.

The agency said it had received €4.2bn in cash for BoI shares by 31 December 2013, and gave its remaining shareholding a value of €1.1bn.

In a mid-year update to coincide with the publication of its 2013 Annual Report, the NTMA said that normal market access had been achieved and it had raised €7bn from the bond markets so far this year as a result.

It said this was just short of its €8bn target, while it had also been successful in auctioning a number of short-term bonds.

The NTMA also said it had reduced the amount of debt due for maturity in 2016 from €10bn to €8bn, and hoped to reduce this further with the aim of “smoothing the debt maturity profile”.

The agency noted progress on changes to its structure and functions, including the statutory establishment of the Ireland Strategic Investment Fund, NewERA and the Legal Costs Unit. 

It also noted progress on a number of state investments, including the new DIT campus in Dublin’s Grangegorman and a number of education, health and justice-related developments.